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Better Offer: AMEX Fidelity 2% Cash Back And $50 Statement Credit

May 12, 2015
by
Million Mile Secrets Million Mile Secrets

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What’s the American Express Fidelity Card?

You’ll earn 2 Fidelity points per $1 (2% cash back) on all spending with the Fidelity Investment Rewards American Express card, when you deposit your rewards points into a Fidelity account. So if you spend $2,500 on this card, you’ll earn 5,000 points ($50).

Other perks include:

$50 sign-up bonus when you spend $500 on purchases within the 1st 60 days of opening your account

No annual fees

But keep in mind, if you use this card overseas you’ll have to pay 1% in foreign transaction fees.

Folks Like the Fidelity Investment Rewards American Express Card Because It’s a Simple 2% Cash Back Everywhere. You Don’t Have to Worry About Categories or Spending Limits!

When you use this card, you will NOT be charged cash advance fees and you’ll earn 2% cash back!

Should You Sign-Up for the Fidelity Investment Rewards AMEX Card?

This card is a fantastic option for folks who are looking for simplicity. That’s because, you’ll earn 2% cash back everywhere. If you prefer cash back and you’re looking for a card to add funds to your AMEX Serve account this card is a good option.

There are also similar cards that don’t require you to have an investment account. For example, the Citi Double Cash earns 1% cash back on your purchases and 1% cash back on your payments.

That said, you can earn more with a card like the Discover it® Miles. You can get 1.5% back on all purchases and your miles are matched at the end of the first year. But you can NOT use it to load Serve.

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Editorial Note: We're the Million Mile Secrets team. And we're proud of our content, opinions and analysis, and of our reader's comments. These haven’t been reviewed, approved or endorsed by any of the airlines, hotels, or credit card issuers which we often write about. And that’s just how we like it! :)

4comments

I use the fidelity 2% cash back card. You should note that there is no annual fee. The Chase card has no fee for a year, then $95. So even if your’e getting an effective 2.7%, the first $3,515.52 charged is wiped out by the annual fee once it begins, basically the first $293/month over a year. Add to the fact that airline and hotel miles seem to depreciate as fast as the ruble after an internationally condemned invasion of the Ukraine and I’ll take the 2% cash back to spend as I please.

You do need a fidelity brokerage account to redeem the 2% but I believe you can transfer it out immediately otherwise a statement credit just gets you 1.5%. A better idea is to use it to buy one of the commission free ETFs they offer. I like the ITOT, Fidelity’s version of a total stock market portfolio. Leave it there for years and let it compound.

I understand you can use points to stay at a place like the Amdaz. You can also use AirBnb and other services for much less. There’s also the consideration of investing the money back from the Fidelity Card in a tax deferred account. With a reasonable return over time I’d have far more money to work with than the value of the CSP points. It all depends on how one values things.

I understand you can still earn 2% cash back without depositing into a Fidelity account, so long as you redeem 25,000 points for $250 (or more). I haven’t tried that lately though, so I cannot confirm it with certainty.

Also, with the Premium Air Rewards option you can get better than 2% toward airfare. e.g. You can get a domestic U.S. ticket worth up to $400 for just 25,000 points plus a $30 booking fee. So that’s up to 2.96%, though something like 2.7% is probably a more reasonable expectation to shoot for with the Premium Air Rewards option.

“Earn 2% cash back on all purchases when deposit rewards points into Fidelity account.” I am not familiar with Fidelity account at all. Can you please explain a little bit more about it. Fidelity account is like bank account or more like Paypal account? For account like Paypal, I will go ahead and create a account, but if it is a bank account, I might want to think about it.

Editorial Note: We're the Million Mile Secrets team. And we're proud of our content, opinions and analysis, and of our reader's comments. These haven’t been reviewed, approved or endorsed by any of the airlines, hotels, or credit card issuers which we often write about. And that’s just how we like it! :)